The cheapest cars to insure for new drivers

Key Takeaways

• New drivers are seen as a high risk by insurers due to their inexperience on the road, so they often pay more for cover

• Young and new drivers can benefit from cars in lower insurance groups as these are generally cheaper to insure

• You can also increase your voluntary excess, pay annually and keep your car in a locked garage if possible to reduce your premiums

What are the cheapest cars to insure for new drivers in 2025?

The cheapest cars to insure for new and young drivers, according to MoneySuperMarket data, are the Fiat 500 Sport, Volkswagen Up! Move Up, Peugeot 107 Active, Fiat 500 Lounge and Fiat 500 S. Here’s a look at each car in more detail, along with their key features and what makes them a great pick for new drivers.

Fiat 500 Sport

With average insurance premiums of £1045^[1]Based on the median annual price of car insurance policies sold through MoneySuperMarket between October 2024 and December 2024 for policyholders under 21s with more than 49 sales in the period., the Fiat 500 Sports is officially the cheapest car to insure for drivers aged under 21. It’s a stylish and compact city car generally found in groups 9-15, appealing to young drivers thanks to its retro design, nimble handling and fuel efficiency.

It’s particularly well suited to city driving, with a small footprint and light steering making parking and manoeuvring effortless. The Fiat 500 and its many variations have won numerous awards, including the Best Used Small Car by Auto Express.

Volkswagen Up! Move Up

Another fantastic option for young drivers due to its low insurance group (1-4) and reliability, the Volkswagen Up! Move Up is a small and practical hatchback with a surprisingly spacious interior. With average premiums of £1078^[1]Based on the median annual price of car insurance policies sold through MoneySuperMarket between October 2024 and December 2024 for policyholders under 21s with more than 49 sales in the period. for drivers under 21, It’s known for its strong build quality and efficient engine, making it great for both city driving and short trips on the motorway. It’s also won the Best City Car award from Auto Express multiple times.

Peugeot 107 Active

The Peugeot 107 Active is third on our list, with average insurance premiums of £1066^[1]Based on the median annual price of car insurance policies sold through MoneySuperMarket between October 2024 and December 2024 for policyholders under 21s with more than 49 sales in the period. for new drivers. It’s usually found in groups 3-7, a compact and efficient city car known for low running costs, easy maintenance and manoeuvrability. The 107 Active’s small but peppy engine makes it perfect for urban environments where agility and fuel efficiency matter most. Parker’s ahs awarded the Peugeot 107 Active as Best City Car in previous years.

Fiat 500 Lounge

The second Fiat 500 variant on our list, the Lounge adds a touch of luxury to the classic Fiat design, with an upgraded interior, a panoramic sunroof and an improved infotainment system. It’s still an economical city car but with a bit more in terms of comfort and tech, making it a stylish and affordable choice for young drivers - the cost of insuring the Fiat 500 Lounge for young drivers is £1103^[1]Based on the median annual price of car insurance policies sold through MoneySuperMarket between October 2024 and December 2024 for policyholders under 21s with more than 49 sales in the period..

Fiat 500 S

Firmly establishing the Fiat 500’s dominance in our cheapest cars to insure for young drivers list, the third variant to appear is the 500 S. It’s a sportier version of the classic Fiat 500, with more aggressive styling, sport seats and a slightly firmer suspension. It’s still efficient and affordable to insure, but offers an overall more engaging driving experience - often found in groups 10-16, with an average insurance premium of £1155^[1]Based on the median annual price of car insurance policies sold through MoneySuperMarket between October 2024 and December 2024 for policyholders under 21s with more than 49 sales in the period..

What do car insurance groups mean?

Car insurance groups are categories that insurers use to sort cars based on a number of factors that determine their overall risk to the insurance company. These groups number from one to 50, and the lower your car’s group the cheaper it will often be to insure.

Car group rankings are based on things like a car’s performance, security and repairability, so faster, bigger and more powerful cars with rare parts or modifications will be pricier to cover. On the other side, cars with smaller engines and lower performance specs are at less risk of being involved in accidents or being stolen, so they’ll generally be cheaper to insure.

Why is car insurance more expensive for new drivers?

New drivers with little experience on the road are seen by insurers as a high risk of being involved in a car accident, as such they often pay more for car insurance. The same is true for young drivers, a group that usually overlaps with new drivers, as well as those with convictions and points on their licence.

How to get cheaper car insurance as a new driver

• While car insurance premiums are higher than average for new drivers, there are ways to bring the cost of cover down:

• Increase your voluntary excess: Increasing your excess is the fastest, simplest way of reducing your car insurance premiums - just be sure you can afford to pay it if you need to claim

• Pay annually: Paying annually for your policy instead of monthly can shave a few pounds off the cost of your insurance. This is because you pose less of a risk for your insurer to fall behind on payments.

• Keep your car safe: Your car is less likely to be stolen or vandalised if it’s parked off the road at night, with the ideal place to store it being a locked garage. The more you do to keep you car safe, the more likely your premiums will be reduced. You can also go the extra mile by adding security enhancing devices to your car, such as a tracker, alarm, or immobiliser.

If you're interested in find out more ways to save money on your car insurance, check out our car insurance money saving tips.

Compare car insurance quotes

The quickest and easiest way to find affordable car insurance as a new driver is to shop around and compare quotes online with MoneySuperMarket. Just tell us a little about yourself, your car and the cover you need, and we’ll search the market for quotes that match your requirements.